This article consists of 8 pages and 2350 words. Marxist Economics In order to have full access to this article, email us at thedocumentco@hotmail.co.uk

Ref No: 2199

Introduction:

Even though many economic theories have been critically acclaimed, Marxist Economics are the only way to explain the present global crisis (Sweezy, 1990; Tylecote, 2013). This essay is an attempt to go beyond one-sided, speculative and individualistic explanations of the global economic crisis which present

it as an act of God or the end results of greed and stupidity, too many houses being constructed, Marxist Economics herd behaviour, over-regulation of the free markets, regulatory failure or the neoliberalism. It is also beyond the official versions which label it as “financial crisis” separated from a “real economy.” Government officials support the later version. Contrary to all these reasons this essay attempts to understand the causes of the Global crisis with the help of Karl Marx’s methodologies which explain the social structures and processes and how people exercise them more precisely.

Karl Marx’s approach to understand the underlying causes and the particular features global crises is very helpful to explain the reasons of crisis in both spheres of finance and production and their relationship (Howard and King, 2014; Keohane, 2005; Lange, 1935; Marx, 1968; Marx, 1990; Marx, 1993; Marx, 2007; Moseley, 2003; Sowell, 1989).  It is a systematic attempt to relate the conjunctive factors which caused the crisis based on analytical research.

The major factors include the US economy’s low-profit rate, economic inequalities, increased investment in the financial sector along with the use of the complex financial instrument, increasing the leverage of investments, weak government regulations for the financial sectors, inflation and last but not the least housing sector (Bernanke ,2005). It also draws attention to the role and significance of the construction industry which was one of the reasons in the global crisis (Baylis, Smith and Owens, 2013). The construction industry is considered as one of the most important industries in the world.

The construction products are the backbone of the public infrastructure and physical structure for many other productive activities which include commerce, services, utilities and many other industries (Baylis, Smith and Owens, 2013)…